Section 21-118.1 - Chief Investment Officer. - Maryland Statutes

§ 21-118.1. Chief Investment Officer.
 

(a)  In general.- Notwithstanding any other provision of law, on the recommendation of the Executive Director and the Investment Committee, the Board of Trustees shall determine the qualifications and appointment, as well as compensation and leave, for the Chief Investment Officer who shall be the head of the Investment Division. 

(b)  Considerations.- In making determinations and appointments under this section, the Executive Director and the Investment Committee shall consider the comparative qualifications, compensation, and leave of employees serving in similar positions and discharging similar duties at comparable public pension funds.  

(c)  Compensation.- In addition to the Board of Trustees setting the salary of the Chief Investment Officer under subsection (a) of this section in accordance with the State budget, the Board of Trustees may also award financial incentives to the Chief Investment Officer in accordance with subsection (d) of this section. 

(d)  Criteria for award of financial incentives.-  

(1) On the recommendation of the Investment Committee, the Board of Trustees shall establish criteria for awarding financial incentives to the Chief Investment Officer. 

(2) The criteria under paragraph (1) of this subsection shall be based on: 

(i) objective benchmarks of investment performance for the assets of the several systems; and 

(ii) criteria used by comparable public pension funds awarding financial incentives to chief investment officers. 

(3) The Chief Investment Officer may not participate in any deliberations regarding the establishment of criteria under this subsection. 

(4) The criteria established under this subsection shall be included in the investment policy manual. 

(5) On or before September 1 of each year, the Board of Trustees shall submit to the Joint Committee on Pensions, in accordance with § 2-1246 of the State Government Article, a copy of the most recent criteria established under this section and any financial incentives that were awarded for the previous fiscal year to the Chief Investment Officer. 

(e)  Compliance of financial incentives.- The compensation and any financial incentives awarded to the Chief Investment Officer shall be in accordance with the limitations on administrative and operational expenses under § 21-315(c) of this title. 

(f)  Status.- The Chief Investment Officer appointed under this section is a State employee and shall be entitled to participate in the Employees' Pension System under Title 23 of this article. 

(g)  Termination of Chief Investment Officer.- On the recommendation of either the Investment Committee or the Executive Director and on receiving an affirmative vote from a majority of the Board of Trustees, the Executive Director shall terminate the appointment of the Chief Investment Officer. 
 

[2007, ch. 5, § 7; ch. 368.]